- The Walt Disney Co (NYSE:DIS) is launching a cheaper, ad-supported tier of its Disney+ streaming service in the U.S. in late 2022. It also aims to expand internationally in 2023.
- Disney would be joining the majority of entertainment companies, including AT&T Inc (NYSE:T) WarnerMedia, Discovery Inc (NASDAQ:DISCA), Comcast Corp's (NASDAQ:CMCSA) NBCUniversal, and Paramount Global (NASDAQ:PARA), which have launched ad-supported tiers of their streaming services as they seek to grow in the increasingly competitive streaming market, the Information reports.
- Disney seeks to hit its goal of profitability for its direct-to-consumer business in 2024 as it could fire up slowing subscriber growth for the service.
- The moves signal how the focus of video streaming has shifted away from ad-free services, like that pioneered by Netflix more than a decade ago, to a more traditional ad-supported television model.
- Price Action: DIS shares traded lower by 1.63% at $143.20 on the last check Friday. (Updated)
- Editor's note: The news has been updated with confirmation of Disney launching the service in late 2022.
